Nam- ASHUTO SH RATH

Rell-120BTO031
Serton B
1 Ecngnics aStdy ef atiening Susteme
ScatCe
is Stdy hotw
the npoite ut Custmets
allecated t skulkl natwal ai
be aburdadt e SCo
Reyeusces my
Man-Made Moretahy n6n-0eutaAy
SCarce GIUka
Shdes abeut
exampke- tconemics
e esoumcas
ke ais, uhh
ais, wheh
diamsnds, as well
as
abut parices
paices
a
avalable in pleng Speaks
Scarcenetuse ot diamo
beth. poirds o t .the ond as a i

htc its hgh poice

s seassn
phtdy,
tt i net
n ot iced
availalle i
is the Scienca
Robbiht," Ecnanjcs
As.e fo Liono bodauioueas
elation betuas
uman altenabve uses
alteriabve useg
which Shdies which ave
Aave
ond SCattCe Means
SCaLce
coauln
ende
ends
Manian oalance
brlai.ce
uhee
ujhere CDaLs Mer
to
Econanics.helps lmibed bieues,
Con tT Maimum benekt outn
he Centsulpooklam ec
feyolses aeund hollouarg Sucthers
These dhe Ceatod oob
(a) Wht t fasduce ag eweh

a m al
sal
b) He Poeduce Sace
Sace
Solusbena t thin

C) Whem D faodue?
Thue peblsms a CCNAMICS Wis dua
Ualinited unts
Limibed ROBoURices
esncos
ACtesnadve L

th markes in ukeh he
nput Markts ahe
poodure ooducts exchangid

Gapithnk an ha -ke thoe ku

Land, Labeue 4
pooductin
the morkezs uhich gae
Outut Markets ahe
ae exchnged..
and
SesCVIces pu
orket

Poymant Lobaue, LarN, aptal 4 ErtreheQLs

Paymu
ulugg, Rerct,test h

Heuehelds Busness hnts

Conumghiapeadrood ray

noeds Sesyies
utpult Naskot
seauot Cuves tha Csmbinati'sn o
inputs Gapibelat Pevidke
Sam nel epue. a
gtph sheug
all Combiratie peible 4
highte lovel utptt.

AK
Capild

AL
Labsus
Curve tell the Sism
Sim
slep
IcSlepe eiss4uaat
noededd o oepoc a ONt
houch Capil the. oupt, Isequant
cure
Maintain
lakour Coutesput
u0mUns
CosOMs
guivalent
18& S
ndihirence Curve
hew u h maney
muh mauy
tltells hot
line bosicely sbnd. s agaph
s csat
secost abla sbend
p ducer Capital ad
hi
1ombihatis oh apibal
shous all,
tat givn
Total Cot.
btil Cst.
awalablo ot a a
labouc
Caboux i 8 d c A t A n o l l o u s

TL Cqmd whch
C - ) k + (u)L)
W = lage Rocke
Whol
 B
Labouk-
egkimale
Leost Cst tcchnelsgy sed
Carmbnabins, he doa
eptiuum lovel o uut
Conbinaten
Choses a
aluays CodLy. The lout Catly (ny
oast indicaled
Lavet puebput
btween iseost
pnt tonginey t a t bovel ef eup
evel el cu
1scquaAt Coadig
aud Slept t
agt uumi 2abisn Slepe at
Issquoat wve
MPL

Leayt c e s M Mk
c o m b 1 n a h a n

ISe44t

seco he
. Pate et_jvto Tnsne EeetSohsb-thtenfedt.
i interbretd oricesomptionve(PcC
foice EMect
Fct+Subsbadia Elaet
Poice Eert =Lncae
Neml neod
i "When
Wlon God X is
E tsuches E btt an

SUbshw Tncoe, >X

fokeFpct
E to E, Cos Ume Cn h
Eto E3- As le move
distanee tan,to Xg is ice Elec
by
b Xa ngw

khe changes
thanges8rn
Soon E, to E (a bodget
Movenart
Movemant
AB Ac') Calld Sob iouban hct. i s hahpans

selabve peice.
due chorge
Ac
AC
heng
and lAs chango a icone
Callal
Gl.
 Whon nodX inerio

aie iec X, B '.

Sobstheha c
2AcsML_ C mo
nehig% ed Whon we qive mge goed X
Choeking
is -Ve
So,
So ceme hect
hoct + ( sl
Eheet= Subsbtuhen
ie o
the alioence
Du to Chang n e l a b v e pice,
ina choge o E is is
vdisanco map, h
lie Sam
As both points
Sama
Covel oSaksfoctin
CAUmese heseas, bodgt Le co
AC AC and 2aeree
nwSallg. i s cha
tho quonby o god X ld incor eed
Xa X a uhich
2ye llal
 Whon need X is a Gend
A 9n9ood 28 a Shecial Case o inleoioe gos4,
this SUbebiéubian efeet outueiybad by
nogative nceme.ect

- ve
Suhs buh' Poice EHocd
in cass o pn GR
cant hpet
as
ehocthconi t
eloct
en god, beth prie
I
-Ve ect - Ve
9neruo 9094, incsm
- sthar ve

penCR ehpct
SRWImOs Can pry
Suapkue Dkence

yhat tetally
DiMR behwen
aoibuee Suapleus D oTtie b
pee ond ct
 Sechan A
heseh old has imited ineone
1Eveny
and So thore
moximize2
tini bed
the ubbty Spent n SUch a way
must obtrunhed,
maXimuym benhit
cendihiors Undesc
wkreh ba
COtain Level
ochiuvig ighast
These
C o s m d u l h e

inited
ublt 3 basic desieps f r
take
haeh old must
Evehy
Evey
Sa/m ettput, b
erthput, b demae
dema
th of each o e t ,,
poodet
e
ke

much
Haw aboc
Mud todasy how uch
How
(in) How much
Spand at there
Sutwe
ormakanAs Capitalfoeten

Sase
Gapital spt cveskl
better eseba n d savg poobloo
kods meje
to major
AVestment,
it
to Gapital hungs wue alweys
The werte ohuman
The Limitaton which pces a

Undinibrd allod_Bdgt sáaid

Uuts e
check an he
plausibee
Cambinats e
epsesus th
buyek Can wichas
xeduct 4 SO veg
a
a vailai
Thefea, Cstmue Cnalyze tha epbmal w wy
which laNekag purchwy Pe
ininiz epoutun
t Maxlnu2 ublty
Maxima
Vae
Uhtity

Y
ey
Budget Constsant
Uaio af X 77
Linikl are
CsMO Should sprd
whick
n th goods
Marainal uhbty
ndiprence wNe
Slosof Mdy
Slpe Bodyet Caastot-
A. P
Cal a t ; ha
Since beth sles an
6uty moxtnins Valuo

MOx
mdy
a thNa

CeALd ms maxtoU2e uty

 The Candrions he Equilibsium hahio
samaginel u6bly t a Cemm&dy
ts poice Equals t fio a margunal
ubthy oh ethes Cemmedity t
the MaximUn
this Cedibion Vialakd, than
Satshacha o the
net bo Fwth pL'bee Theehote, again
ubbey Con e increastd by Shta
angThS
mony

oduction funchan:=64g14 1ag*

iven,
Paice ofLabous, Pu=a
Captal, Pk = 34
S
MP d/8 da
L
dk
Mf 9/dk
ML
Mex L 2

mput Comhnaho,
Fee optnal
M P k

k-21
3
 linc
The Cuaten ecdt sice t
C k+ wL

194 3 k +12L

FqyuabyO t ,
1944 34/tla
1944 2YL +12L
1944 36L
B L1749y
36

L 54
K- L 2,5

S, Fiono hinal npu Cenainatio

Labore Capital ore S 4 3 ont
babaetnely
82 Lau Dinnis Kateras j Vks Lapetka
nOmahs eWaohually at inktkiy
wtadly
ellpuk
Cstot A 1acseaso

P&sumptsns Tecknoloty
utont Teolos
prodchn
homogpnbus d egual
ake
l All Gbous
cBntat

AP s &1siy
MPAP
APAf is Salby
M AP roximi2d

wn Af
MP = AP
max1mi Zed
MP O T

At,01 OpRatsnul
Stag

AP

Sthg 1 Stoge 2 taga 3

bean
MP czeues MP E MP4 AP beh T becsE
also eseL
Emwhee m
TP jncvea O MP bocsM

A P Oxbius

dacln
 Cpeaisral poeduet'sn1s
we
Sskge
on
poeduohtn,
staga
Exch addiharalL
haNe
Vau able input
Sctep addiosral Untsbut af
uill shil poduce
decseasirg ate

edue

AP

Shos
Sely-terpdanof lauw_ukih ShBDho siyiitare MI
thon Ar, AP ise,
MP is mee
A lag s at tHe higjwh
he higpad
becemas egal, AP x
W n MP AP AP, AP
AP Sals
S e
hss thon AP,
When MP becarnas
stape tbon AA
Cuave ok M
+Ve but MP becen -Ve
AP Shllgemaina

Totul Produ hity

hebeaes 4 ras nu
 alps
Ne, this Cau o Vatiable postan elps
To maximize abowe pooducten
To 2C&CSR ehiciency
poductan C
b ViNzy auhe belhktns
uput- 0utpact
wabéy F
qwanby
by Vakyig hs
ouput ris *seasid
esntial
inpult , it VOy
aathese
NoNo ism ChOeses ha third Stag Tela

Poeduces
Sc&nd Stage Maxim cnd
educt (TPnthis
his Cale

unlikely frt pxoducdn a

MP
alo cltp
1 nCses 1n guen
Pha wth
ncsea
M the þRcctap
enond
fsiceoice Elastiity dmandcd uwth
qlandbty
Cherng
erestngk chon
Madsnaticalls dumanled
Elasticity ef=
Chay 1 qpatity
oo chaaga h p7 ce
Demond
e ncsbsasiveneSs
basrelly d Meawes
bocekevek
doansd o á cetaua chonq i
 Detzmbgnda fEestuity o Dtmad ae
Alailailoty Sbebtdes
thote Subshbeks prok
avallablo, than the npact @n aice

elasbaly. Be thoe
do ma
elorhuky
becew ecty ilaste
beiy Oninporart
Tmpertauce
thoe i a lechangg h paie
an importut that chage'
1cm, we parchoss
y-bt ou
nglicabe pstce uithoat askrg
t a ta
&Un, demand
Ti Dmanui
no elashe
hholy
1NComo Spend
eorban
o soeuchn koperd
nn Poedoetion factou
thei elastiat
Sactoe is
domard
Sve eloshe denond breb
loco
 Distibutan of ge-bd
haxiou 2e e , parvducti,
To made C
Svc& uut be
dea fo xoduC
denand cho vifkla
Chans elashuy

Saction B
dhesence lhatue
Casumes Suepus is hepesan uilly b
0meunt a
aNnOM
Cunt
ts
pay ote a ot 4
betuea
fabduceh Swiplus cost of dick
CUnt market 4
s ConsomesSuplug
S Supb
COe

bice P

D-Dem
CUsu
yodvc
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